• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

A Pullback in MP Materials Looks Like a Buying Opportunity

Here's how we'd play the stock of this rare earth miner.
By BRUCE KAMICH
Jul 08, 2021 | 11:15 AM EDT
Stocks quotes in this article: MP

During Wednesday's Lightning Round segment of Mad Money one caller asked Jim Cramer about the rare earth miner MP Materials (MP) . "I'm happy with their business and I want you to stick with it," was Cramer's response.

When we reviewed the charts of MP on April 7 we wrote that "earth minerals are indeed key to our modern way of life and our military security. The chart of MP, however, is currently suggesting we could see further price weakness. MP could test the lower end of support around $30 and a break of that area could precipitate further declines. Keep MP on your market minder and shopping list."

Let's check out the charts again.

In the daily bar chart of MP, below, we can see that prices weakened into early May before new buying materialized. Prices tested but held the rising 200-day moving average line.

The On-Balance-Volume (OBV) line declined from March to May as prices weakened but the line has not improved much from May even though prices rallied about $15.

The Moving Average Convergence Divergence (MACD) oscillator did rally above the zero line but it has narrowed again and is close to a bearish downside crossover.

 
In the weekly Japanese candlestick chart of MP, below, we see a mixed picture. Prices made a successful test of the rising 40-week moving average line but the trading volume has declined over the past three months and the OBV line has not improved much since early May.
 
The MACD oscillator has narrowed and is poised for an upside crossover and potential buy signal.
 
 
In this daily Point and Figure chart of MP, below, we can see a potential downside price target in the $30 area.
 
 
In this weekly Point and Figure chart of MP, below, we can see a tentative price target in the $64 area.
 
 
Bottom-line strategy: MP could pull back to $30 or even a little bit lower. Aggressive traders could use a pullback to $30 to probe the long side of MP.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Materials | Metals & Mining | Mad Money

More from Stocks

Bearish Bets: 3 Stocks You Should Consider Shorting This Week

Bob Lang
Jun 4, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

The Word Is, 'Lexicon' Is Worth a Trade

Bret Jensen
Jun 4, 2023 7:00 AM EDT

Here's an options play on this small pharma name that just scored an FDA win.

As the Market Shifts, So Should Your Strategy

James "Rev Shark" DePorre
Jun 3, 2023 11:50 AM EDT

Let's look a how to adjust trading techniques to fit the changes in the market.

Market's Frothy With a Side of FOMO

James "Rev Shark" DePorre
Jun 2, 2023 4:41 PM EDT

The small caps and the Dow finally host the party on Wall Street. But will this broadening action continue?

This Is Still My 'Preferred' Style of Investing

Jim Collins
Jun 2, 2023 2:00 PM EDT

Let's look at some whopping returns for VLYPO and two others to dive into.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login